Tarek Othman Alkasabi, Chairman of Dallah Healthcare Co (4004), expects his company’s market share in the Kingdom to increase by 2%.
This follows the signing of an acquisition and subscription agreement with Ayyan Investment (2140).
Details
Under the agreement, which is subject to regulatory approvals, Dallah will acquire 97.4% of Al-Ahsa Medical Services Company, which owns Al-Ahsa Hospital.
Dallah will also fully acquire Al-Salam Medical Services Company, which owns Al-Salam Hospital.
This will be achieved through a capital increase that will see Dallah issue new shares to Ayyan Investment amounting to approximately SAR 660 million.
So what
Acquiring Al-Salam and Al-Ahsa hospitals is a “significant step” for establishing a presence in the market of the Eastern Province, which Alkasabi noted is the “third largest market” in Saudi Arabia.
He also noted that the acquisitions would raise his company’s total number of hospital beds to more than 2500, up from the current level of more than 1800, and increase revenues and profits.
Some context
Alkasabi noted that his company focuses on acquiring already established hospitals, given that such deals save time on land purchases and design work.
He also mentioned that building hospitals typically takes about 5 years and usually incurs losses in the first two of them.
Now what
The company is keen on expanding its domestic foothold to keep up with the growing demand for healthcare services in various Saudi cities.
Dallah Health currently operates several hospitals and clinics and provides home care services.
The number of patients treated in its hospitals exceeded 2.5 million in the past year.
